Tata Consumer To Acquire Bisleri International For Rs 7,000 Crore: Report

Tata Group houses its consumer business under Tata Consumer Products, which also sells packaged mineral water under the brand Himalayan and with brands as Tata Copper Plus Water and Tata Gluco

Tata Consumer Products Ltd will acquire Bisleri International for up to Rs 7,000 crore ($857.38 million), as reported by the Economic Times (ET) on Thursday.

Ramesh Chauhan, chairman of Bisleri International, does not have a successor to take Bisleri to the next level, according to the ET report. Earlier, he had sold brands such as Thums Up, Gold Spot, and Limca to Coca-Cola.

Chauhan told ET although selling Bisleri is a "painful" decision, the Tata Group will "nurture and take care of it even better". "I like the Tata culture of values and integrity and hence made up my mind despite the aggression shown by other interested buyers," he added.

Tata Group houses its consumer business under Tata Consumer Products Ltd (TCPL) which also sells packaged mineral water under the brand Himalayan and with brands as Tata Copper Plus Water and Tata Gluco in the hydration segment.

According to industry observers, if the deal is finalised, it would provide the Tata group FMCG arm a larger play into the fast-growing bottled water segment.

The Indian bottled water market was valued at over $2.43 billion (around Rs 19,315 crore) in FY21, said a report from market research and advisory TechSci Research.

It is expected to grow at a CAGR of 13.25 per cent on account of increasing disposable income, rising health and hygiene awareness, and increasing product innovation, the report added. "Bottled water is gaining popularity among consumers because it is thought to be more hygienic than loose normal water in the market, which is not good for health and is unsafe to drink," the report said.

According to Bisleri’s official website, the company has more than 150 manufacturing units and a network of over 4,000 distributors with 5,000 trucks across India. In 1965, Bisleri was started in Mumbai as an Italian Brand. The Chauhans acquired the company in 1969.

Several companies including Coca-Cola India through its brand Kinley, PepsiCo's Aquafina, Bailley from Parle Agro and Indian Railway Catering and Tourism Corporation (IRCTC)'s Rail Neer compete in the segment but they all trail the market leader Bisleri.

TCPL, which has been formed after merging the consumer products business of Tata Chemicals with Tata Global Beverages, aspires to be a formidable player in the FMCG category, by expanding its play into the existing category and venturing into new areas.

After the news, Tata Consumer was the top gainer among Nifty50 stocks today, rising over 2.5 per cent in early trade.